Invesco launches new equity fund

Invesco has launched the Invesco Global Enhanced Equity Fund, with the aim of providing Australian investors access to a systematic global equity strategy with a 20-year track record and more than $16 billion in assets under management globally.

Invesco said the fund draws on more than 40 years of experience in systematic and factor-based investing, underpinned by proprietary research and implementation expertise and will be managed by Invesco Quantitative Strategies (IQS).

The actively managed fund aims to deliver 1% p.a., before fees, above the MSCI World ex-Australia Index, with a targeted tracking error of 1.5% to 2% p.a.

It invests in a diversified portfolio of 400 to 550 global companies using a systematic, multi-factor approach designed to capture value, momentum and quality signals within a tightly controlled risk framework.

Since inception on 31 July 2005, the strategy has delivered 1.3% p.a. above the MSCI World ex-Australia Index, including 5.3% alpha in the 12 months to 31 March 2026.

Invesco managing director and head of Australia and New Zealand Jonathon Cook said Australian investors are increasingly looking for solutions that combine the alpha potential of active investing, with the risk management of a tracking error constrained, systematic process.

"In a market environment where returns have been increasingly concentrated in a narrow group of stocks, finding alpha through a diversified and disciplined process becomes even more important," Cook said.

"This fund is designed to meet that need by offering a transparent and repeatable approach to global equities, backed by Invesco's global scale, research capability and long heritage in systematic investing."

Invesco Solutions director Scott Bennett added: "Our aim is to generate alpha through a repeatable process without taking on unrewarded risk. While many systematic approaches rely on similar optimisation tools and techniques that can lead to herding, our approach focuses on preserving factor diversification and improving the alignment between signals and holdings, reducing crowding and commonality amongst positions."

"Having managed this strategy for over two decades, IQS has a proven track record of delivering attractive risk-adjusted returns while maintaining tracking error within the targeted range. We believe this reflects the strength and consistency of the underlying investment process."